TATA NANO

TATA NANO

Tata Group chairman Ratan Tata on Thursday unveiled the Tata Nano at the 9th Auto Expo in New Delhi on 10th Jan 2008 will be launched before Tata Motors next AGM (Annual General Meeting) i.e in the 2nd half of 2008. Small - will seat four to five people and cheapest can in the world scooter parts Nano means small in the mother tongue of Ratan Tata. Smallest and cheapest car in the world cost Rs 1,00,000 Called as peoples car

FEATURES OF TATA NANO

PRICE- Rs 1 lakh, plus value-added tax (VAT) plus transport charges. POLLUTION- lower than 2-wheelers. SAFETY - the 623 cc, 33 HP petrol engine meets Bharat Stage-III emission norms and can also meet the Euro 4 norms. ENGINE- 623-cc petrol engine generating 33 bhp of power, a 30-litre fuel tank and 4-speed manual gearshift , no power steering, front disk and rear drum brakes. The company claims mileage of 23 km per litre. The Nano will come in three variants -- standard and two deluxe models with AC. FACILITY- air conditioning, The car's dashboard features just a speedometer, fuel gauge, and oil light, does not have reclining seats or radio. The shock absorbers are basic.

HOW IT WAS MADE FOR ONLY ONE LAKH

Make things small and lighter Aluminum engine instead of cast iron Rear engine no requirement for link b/w engine and rear wheel Tabular design instead of conventional rod design Regular bulbs instead of long life bulbs Plan to assemble the car at dealers workshop cut logistics spends.

EMERGING RIVALS

Maruti-Suzuki will completely reskin Maruti 800 (similar to what the company recently did with Zen-Estilo) next year. The company will rebrand it and even power it with a 600cc engine against the current 800cc. The Munjal family behind Hero Honda, India's largest two wheeler maker, which is mulling a foray into the fourwheeler segment .is said to be in talks with BRP (Bombardier Recreational Products) for developing a 500cc small car to rival Tatas one lakh car. Hero Group was reported to have been closely monitoring the Rs one lakh project by Tata Motors and learn from it to de-risk its own Endeavour. Renault Nissan is the first one to come up with a idea to rival Tatas car it plans to produce a car priced at below $3,000 (Rs 1.30 lakh) in India. As Renaults local partner Mahindra is not interested in making such a low cost car, Renault- Nissan may settle with indias robust two wheeler manufacturer. Incidentally Bajaj is also planning to foray into four wheeler through a smart car. More are chances for a new JV between Bajaj and Renault Nissan to rival Tatas one lakh car. carmaker Honda Siel said it will enter into small-car segment with the launch of 'Jazz' in 2009. said in auto expo said honda siel india ltd. President. Indias lone electric vehicle maker is believed to be developing a small car based on its Reva platform for the redhot Rs 1-lakh car market. Revas one lakh car would be a four-seater , four-door model and will be powered by heavy batteries than its existing line-up and the new car can reach a top speed of 100-120kph (80kph for the current Reva products) . Revas low cost car is expected by 2010. The current Reva range comes in three variants priced in the range of Rs 3.3-4 .3 lakh in India. Chinese manufacturers like chery which are scouting to enter the indian market may use this opportunity for their debut since they already products in this price range. These subcompact car segment may also attract new indian players like ICML and Xenitis. Global auto a JV of Xentis Group and Chinas Guangzhou Automobile Industry based in bengal plans to introduce a peoples car that would be in sync with the affordability factor. Xenitis signed a Memorandum of Understanding (MoU) with GAIG to manufacture four-wheelers. The proposed xenitis small car is likely to go on sale by the end of October 2008. Global Auto has launched a motorcycle called Xpression early this year.

TATA NANO IS THREAT FOR

Two wheeler manufacturers The countrys largest car manufacturer used-car dealers - Second hand car buyers who spends between 1.5-2.5lakh may move easily for the new Tatas one lakh car. Prominent small car players

NEGATIVE POINTS
Few disadvantages in a rear engine car:
uneven weight distribution and hence poor traction control poor cornering and poor handling poor engine cooling and hence more chance for engine overheating almost no boot space and cramped space for rear passengers

NEGATIVE POINTS
More congested roads More supply - More surplus as less export More competition Less margins Low quality High Real estate prices - parking space and parking charges will become more

WORLDS 5 CHEAPEST CARS

1. Cheapest cars Tata Nano

2. Cheapest cars Chery QQ3

city car marketed in 2003. In China, it is sold for 29,000-50,000 Remnibi, while internationally it is priced at $5,000. antilock brake systems, dual front airbags, power windows and a Euro-III compliant engine with air-conditioning.

3. Cheapest cars Maruti 800

Introduced in 1983, 800cc engine, great fuel efficiency and low maintenance cost. Tagged at $5,200, it is available in both AC and non-AC versions.

4. Cheapest cars: Merrie Star

Made by China-based Geely Automobile, four doors , riced at $5,500, it was launched in 2005 engine size ranging from 1.0 to 1.3 litres, Geely exports this model to Southeast Asia and Africa.

5. Cheapest cars S-RV Mini SUV

Launched in 1998, the HQ or Haoqing S-RV belongs to the HQ series by Geely Automobile, China. This five-door, five-seater is very roomy, adjustable pitch seats, The basic model is priced at $5,780.

FUTURE QUESTIONS

Can the Tatas meet the expectations? Will the one lakh car convey the indias potential to the world? Will Tata stick to its price tag? Will it make sense for Tata to have a car when other players are moving to premium segments? Will the more demanding customers like the low cost machine?

SOME MYTHS
Curtains replacing glass windows, removable bolt-on seats instead of the regular ones, roof will be an optional add-on, and plastic body panels instead of the regular metal panels. Yes, Tata had talks with General Electric for using its re-engineered plastics for its low cost car and Tata may make use of modern adhesives instead of welding to cut down cost, but still there is no definite direction in this issue but certainly there will be no curtains. The one lakh car will be a complete car with definite roof and glass windows.

THANK
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